Building and Developing
New connection charges
Why we’ve changed the way we charge for new connections
It’s widely acknowledged that the way water and waste water companies charge for water and sewerage services has become complex, unpredictable and cumbersome for our developer customers. Therefore, over recent months Severn Trent has been working closely with both Ofwat and Water UK in shaping new connections charging, following the publication of new charging rules issued by Ofwat and guidance issued by Water UK.
These new charging rules, which come into effect on 1st April 2018, provide us with an exciting opportunity to develop a new connections charging framework that provides our developer customers with greater predictability for water and sewerage services built on four guiding principles:
- Stable and predictable charges – We recognise that our developers value stable and predictable charges so, where applicable, we’ll publish fixed charges for water and sewer connections which should allow a developer to work out a reasonable estimate.
- Transparent and customer focused charging – We've published, where possible, fixed charges and defined how we've calculated these charges, enabling our developers to make a reasonable estimate for the charges that need to be paid for water and sewer connections.
- Fairness and affordability – To ensure all developers get a fair deal, both now and in the future, we’ve developed our charges so that they do not discriminate between our different developer customers - self-lay providers, New Appointments and Variations (NAVs), national developers, smaller house builders and individual customers. Our new connections charges apply to all our developer customers, regardless of the number of properties you connect to our network.
- Environmental protection - Our infrastructure charges discount scheme encourages developers to build sustainable properties which save water and reduce the amount of surface water going into the public sewer.
If you’d like to find out more about new connections charging – take a look at Ofwat’s website.
What new connections charges are we changing
We’ve reviewed each of our new connections charges – both clean water and sewerage charges - and you can find more information in our new Charging Arrangement Document. Throughout our Charging Arrangement Document the term “developer” refers to all of our customers who are building and developing properties. When reviewing these charges we’ve maintained the balance of charges between our developer customers and other customers, such as our household bill payers.
Our Charging Arrangement Document not only tells you about our new connections charges, but tells you about the process you need to follow to get a new connection onto Severn Trent’s water and/or sewer network - helping you to make an informed choice as to who does the connection work.
|New connection charge||Changing from April 2018?
|Water and sewer infrastructure charge||Yes this will be changing - there will be one fixed, published charge for water and one fixed, published charge for sewer - charged against each property being connected|
Yes this will be changing - this will be a fixed, published on-site mains requisition charge for sites with 5 - 250 properties - charged against each property being connected. This charge will include the first 22m of pipework and and the actual physical connection itself. There may be exceptions to this which are published in our Charging Arrangement Document.
For development sites with 2-4 and 251 properties and above there will be bespoke charges.
|Income offset and asset value||Yes these will be changing - for the purpose of an asset value payment, the income offset amount is equal to the asset value.
|Water service connection||Yes these will be changing – all charges will be fixed and published
|Sewer connection||Yes these will be changing – all charges will be fixed and published
|Sewer adoption||Yes these will be changing – all charges will be fixed and published
|Water and sewer diversion||No change – we’ll still provide bespoke charges for any diversion works needed|
Working in partnership
While we’ve been designing our new connections charging framework we’ve been working closely with Water UK and consulting with developers, self lay providers (SLPs) and New Appointment & Variation (NAVs), along with their trade bodies and representatives, as it’s been important to hear what our customers think about our proposals.
Alongside this, our new charging framework has been through a rigorous assurance process and we have provided the Water Services Regulation Authority an assurance statement from our Board of Directors.
We recognise that moving to a new charging framework can lead to uncertainty for our developers, particularly when you may have already committed to a development based on a previous charging arrangement. The following transitional arrangements are therefore in place:
- Where a legal Agreement is already in place in relation to charges for site specific work, then the charges defined within that Agreement will remain valid for the life of the Agreement.
- For applications received between 1 February 2018 and the 31 March 2018 for site specific work that will be carried out after 1 April 2018, we’ll provide a quote using our existing charges.
- If you have a received a quote or a draft Agreement under our existing charging framework, but have not formally accepted our offer and signed an Agreement by 1 April 2018, you can request a new quote based on our new charges after 1 April 2018.
If you have any questions about our new connections charging framework, please call our developer services team on
0800 707 6600 – they’re ready to take your call Monday – Thursday 08:30 – 17:00 and Friday 08:30 – 16:30